Partnership structure is under fire from a sea of self-proclaimed professional service firm management experts. Some, like Mark Brandon, bring a well-measured view. Others are more apocalyptic.
Continue reading “Guest post: Partnership structures – separating the geese from the chickens”
When I qualified (was it really 30 years ago?) I had this impression about how law firms worked. The partnership was made up of different people. There were the technical geniuses – the lawyers who were the equivalent of the rocket scientists at the investment banks. There were the managers who made things work, like meeting the deadlines. Then there were the rainmakers.
King & Wood Mallesons has wrapped up a review of its 170-strong partnership across Europe and the Middle East with plans to remove underperforming partners.
With the Magic Circle facing increasing pressure from US firms’ ability to pay top dollar for star talent, Allen & Overy (A&O) has introduced a performance-related bonus pool, separate to its lockstep, both to help retain and bring in leading talent.
In the wake of HMRC’s tax changes which have seen fixed-share partners (FSP) contribute capital at a slew of LB100 firms and many reassess their partnership model, Eversheds has reformed its fixed share scheme by allowing some FSPs to vote in firm elections and take home an increased profit share.
Associates are set to gain whoever wins
Law firm partners at major City firms are facing the prospect of a substantive hike in tax if the Labour Party forms a government in this month’s general election with current manifesto pledges expected to see many partners at Legal Business 100 firms with a five-figure increase in their annual tax bill.
Under Labour’s policy, the 45p rate of income tax will be raised to 50p for people earning over £150,000. According to numbers produced by Baker Tilly, this means that a partner earning £1m will pay £500,590 in income tax and national insurance – £42,060 more than the 2015/16 tax rate that currently stands at £458,530.
Continue reading “Partners at top firms to pay £42k more under Labour tax plans”
National law firm Shoosmiths will move to an all-equity partnership from 1 May 2015 with 76 salaried partners becoming fixed-share – and bringing the total number of equity partners to 126.
Continue reading “An opportunity to ‘get involved’: Shoosmiths to move to an all-equity partnership”
Antony Dutton, a leading disputes partner who had been at Dechert since January 2012, died suddenly in early January.
Continue reading “‘We are deeply saddened’: Dechert disputes star Antony Dutton dies”
Demanding clients, advancing tech and a tough economy have ushered in intense pressure for law firms to change. Can law firm leaders press their institutions to adapt or does the partnership model fundamentally block innovation?
Steve Jobs, the late co-founder, chairman and chief executive of Apple, once remarked that ‘innovation distinguishes between a leader and a follower’. This is a sentiment that could easily be applied to the modern legal market, where clients have been increasingly vocal in demanding a more imaginative approach to legal services and the most progressive law firms are trying to find new ways to stay ahead of the competition. Although we are unlikely ever to see the equivalent of the iPhone, there is plenty of room for a visionary law firm leader.
Continue reading “Leadership and innovation – The partnership dilemma”
Latest proposed changes by Magic Circle firm after recent overhaul of governance structure
Having taken the summer to vote through a substantive overhaul of its governance structure, the autumn agenda of Clifford Chance (CC) will see the partnership consider whether the firm should move to an all-equity model.
The Magic Circle firm currently deploys a single profit pool, lockstep system and partners spend three years as juniors before progressing onto the equity, which ranges between 40 and 100 units.
